Traditionally, people used to log their mileage on paper and switched to Excel spreadsheets, but now many more mileage tracking apps are available. These apps can help you better organize your business finances and reduce time logging trips. They also give you IRS-compliant mileage reports to use when filing your taxes.
Accurate Mileage Reports for Taxes
If you’re a business owner, you know tracking mileage for tax purposes is important. It’s one of the most common ways self-employed people save money on taxes. The IRS requires you to keep a mileage log that includes the date; the mile drove, and the business purpose of each trip. This is especially important for businesses that rely on their employees to travel on behalf of the company. There are many methods for keeping a mileage log, but the best way is to use mileage tracking apps. These apps are simple to use and can help ensure that your miles are categorized as business-related. You can download a mileage tracking app from the app store for free or pay for a subscription to access the most features. Investing in a mileage-tracking app can save you time and money come tax season. It’s also the safest way to ensure you comply with IRS requirements and organize your business finances.
Better Organizing Your Business Finances
You must organize and track your finances to ensure your business is in good financial shape. While it may seem like a hassle, organizing your financials can help you make smarter decisions about your business.
Whether you’re just getting started or have been in business for years, staying on top of your money and keeping detailed financial records is important. This will help you file taxes, apply for loans, and make other key business decisions. The best way to ensure your finances are in order is to set aside time to review them at least once a week. This will allow you to check your income and expenses and see where to cut back to save money. One of the easiest ways to make this happen is using a mileage-tracking app. These apps allow you to track your driving and upload receipts automatically. They can even connect with accounting software to simplify the reimbursement process for your employees. Other features you should look for in a mileage-tracking app include automatic updates, tax features, and customizable options. These can make it easier to report accurate mileage deductions and get the most from your tax return.
Free Your Mind
Investing in an efficient mileage-tracking app can free your mind and allow you to focus on your work, not your miles. It eliminates the time and hassle of logging trips on paper or spreadsheets, giving you more time to focus on growing your business. Some top-rated mileage tracker apps are compatible with iOS and Android devices. They use AI to automatically detect and categorize your trips with up to 95% accuracy. Its free version is simple, easy to use, and features several features. It also lets you track expenses in real-time, monitor your income and deduct all mileage costs. It’s a great choice for self-employed people, independent contractors, ride-share drivers and couriers who want to automate their tax filing. Another mileage tracker that automatically tracks trips is TripLog. It has a basic free plan ideal for freelancers, ride-share drivers and small teams. However, it’s not a good choice for businesses that need to track their entire fleet in real-time.
Get More Done
Using an app to track your mileage can make it easier to see which trips are worth claiming as business miles and which ones you can safely ignore for the time being. The best mileage-tracking apps make calculating and recording your miles as painless as possible while giving you the data you need to get your taxes done right. The top-notch mileage trackers on the market will provide you with a comprehensive list of your trips and the ability to calculate your fuel costs, so you can focus on what matters most. Some more robust applications will even connect to your accounting software, allowing you to streamline your mileage claims and reduce your tax bill simultaneously!
A good mileage tracker is the real star of the show. It is common to find the best mileage tracker for less than $50; some can be used for as little as $20 a month. The best mileage tracking software will also boast features like automatic trip detection, a clever one-swipe classification system and an impressive array of reporting options. Most businesses are more confident since they use a mileage tracking app. Some top-notch programs even offer the opportunity to create a paperless driving log, allowing you to track your mileage without leaving your desk!